blockchain-terms.md

	Description
Hash Function	Cryptographic hash functions take any length input string and return a fixed length output string. In the context of blockchain, transactions are taken as input and passed through a hashing algorithm, which produces a fixed-length output. It is used for security and is the foundation of crypto security. A transaction's hash makes it simple to identify transactions on the blockchain.
Transaction	Transaction refers to the process of moving assets from one party to another in the network. All transactions are recorded and saved permanently. Assume A wishes to send 10 Ether to B. Then this is a network transaction.
Block	A block is formed by combining several transactions. Each block is identified in the network by a unique hash. The hash of the preceding block is used to link one block to the next.
Genesis Block	The first block in any blockchain-based system is known as the genesis block. It serves as the foundation for new blocks to be added to build a chain of blocks, hence the word blockchain.
Mining	Mining is the method of processing a transaction and adding it to the block. Once a transaction is accepted as part of the blockchain, the miners (nodes) get the transaction's rewards.
Proof of Work	Proof of Work (PoW) is a consensus mechanism in blockchain that allows miners to add a new block to the network based on the computation done to obtain the perfect hash. Network participants validate the new block's transactions.